Strategy Question for Experienced/Veteran Day Traders

L

Let the Bulls Run

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I've been trading (mostly intraday and scalping) for around 10-15 years. I recently came across this forum which I find really informative, I wish I had found this a long time ago! I wanted to reach out to the veteran traders out there to see what your strategy and indicator preferences for scalping are, primarily around the 5 minute time frame. I'm not a big fan of loading my charts up with a million things, its just a distraction for me. I currently use price action, volume, and EMA's (to help monitor trend) along with support and resistance. My favorite ToS indicators are the Super Trend Indicator, TTM Squeeze, and TMO. Overall these indicators do well, however some days I will get whipsawed to death so I wanted to see what input I could get from the ones on here that are willing to share and collaborate. Also, I primarily trade TQQQ which is a 3X ETF, so most of the time I'm only looking for a $.50 to $1.00 increase in price before I get out. What I'm looking for is as much conformation I can get before entering the trade. I've tried increasing my time frame window (15 minutes - 1 hour) to allow more conformation before I enter the trade, although I feel that this doesn't help because the small gain I am looking for has already come and gone, or I'm not using the correct parameters. Going the other way (1-2 minute time frame) seems to hurt me as well due to too much noise. Any input form the veterans out there would be much appreciated.
 
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BenTen

BenTen

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I would start with the opening range breakout indicator if scalping is your thing. I would also change the breakout time to something shorter 5 or 15 mins (30 mins is already too far into the market open for me). :)
 
L

Let the Bulls Run

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Thanks @BenTen, I will look into this and add to my chart. Up until now I have been using VWAP as my "Bull Zone / Bearish Zone Line". I think your indicator carries more merit though. A couple of questions about this indicator:

Can this indicator be used in the same chart layout (overlayed) with the supertrend indicator? If it can, it says for the opening range breakout indicator to be used with heikin ashi candles, will this skew the output data from the supertrend indicator?

When you say shorten the breakout time to 5 or 15 minutes, do I change this in the source code script or are you referring to just the typical chart settings?

Thanks in advance!
 
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BenTen

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@Let the Bulls Run The ORB indicator will basically plot the high and low of the first 30 min into the market open. The link I sent you will include some additional features, but if you want to use the simplified version, then go ahead and use this script here.

You should be able to use it with other indicators such as Supertrend. I don't see why it would create an issue.

If you want to adjust the breakout time, you can do so via the indicator's setting page.
 
L

Let the Bulls Run

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@BenTen How do I add the TEMA (30) to the chart?
 
P

Pensar

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@Let the Bulls Run Go to Studies>Add Studies>Moving Averages>TEMA. Once it is on your chart, right-click it and choose "edit study TEMA", then change the input length to 30.
 
C

codydog

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@Let the Bulls Run - if you're making money and happy, i would leave it alone and accept that some days you make, some days you lose.

For any indicator, I'd watch and see how much volume comes in to play, i think you'll be surprised that some of the most popular indicators simply dont draw the volumes you'd expect.

I'd also consider reading how much order flow gets sold to HFTs, what non-marketable order means and how HFTs respond to order flow. If you're gonna scalp, you may want to mimic what HFTs do - Virtu's IPO docs are insightful, imo

I know many see themselves as gunslinging traders , but this is a business you get paid to read not be a fighter.

Good luck!
 
rad14733

rad14733

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Greetings, Let The Bulls Run, and welcome to the forums...

I've been visiting this site for some time now but only recently joined myself... I primarily day and swing trade options and have tried dozens of indicator sets over time... I am currently using modified versions of the under-rated Waddah Attar Explosion, BalanceOfMarket Power, and RayBullPower lower indicators... I use Renko Bars, the RSI indicator, Trend Reversal Indicator with Signals in the upper chart panel... I will, hopefully, be doing a write-up on these indicators and why I use them in the near future... I'm very impressed with the Waddah Attar Explosion and RayBullPower indicator combination for day trading...
 
L

Let the Bulls Run

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@Let the Bulls Run The ORB indicator will basically plot the high and low of the first 30 min into the market open. The link I sent you will include some additional features, but if you want to use the simplified version, then go ahead and use this script here.

You should be able to use it with other indicators such as Supertrend. I don't see why it would create an issue.

If you want to adjust the breakout time, you can do so via the indicator's setting page.
@BenTen is this how the chart should look?
 
L

Let the Bulls Run

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Greetings, Let The Bulls Run, and welcome to the forums...

I've been visiting this site for some time now but only recently joined myself... I primarily day and swing trade options and have tried dozens of indicator sets over time... I am currently using modified versions of the under-rated Waddah Attar Explosion, BalanceOfMarket Power, and RayBullPower lower indicators... I use Renko Bars, the RSI indicator, Trend Reversal Indicator with Signals in the upper chart panel... I will, hopefully, be doing a write-up on these indicators and why I use them in the near future... I'm very impressed with the Waddah Attar Explosion and RayBullPower indicator combination for day trading...
@rad14733 , would you mind sharing your strategy with the Waddah Attar Explosion combined with the RayBullPower? I have them plotted below, it appears that anything less than a daily timeframe the blue line on the Waddah Attar Explosion is out of range (5min pictured)
 
BenTen

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@Let the Bulls Run Well, I don't use the original ORB indicator by Mobius, I prefer the simplified version, so it doesn't include all the extra target/risk lines.
 
L

Let the Bulls Run

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@Let the Bulls Run Well, I don't use the original ORB indicator by Mobius, I prefer the simplified version, so it doesn't include all the extra target/risk lines.
@BenTen I thought I grabbed your version. Would you mind re-sending me the link again so I can install the correct one.
 
BenTen

BenTen

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@Let the Bulls Run

Code:
# Clayburgs Directional Day Filter
# Written by KumoBob Dec 31 2009

# Thanks to ThinkScriptor and aPPLE_PI for helping me with the secondsfromtime() function by showing me the code writen by Prospectus in his Opening Range study.


# Directional Day Filter Line - After the first five minutes calculate the average range for this 5-minute bar. Draw a horizontal line at this level.
# Time Line - Draw a vertical line at 60-minute bar (Low to High of the day so far).
# (slower value for faster moving charts like currency and S&P – Faster value for slower moving charts) (45 minutes to 90 minutes)
# Determine the amount of activity above and below the Directional Day Filter Line prior to the Time Line.
# (A rectangle can be drawn with Blue shading above and Red below the Directional Day Filter Line)
# If the majority of the activity is above the Directional Day Filter Line the trend bias for the day will be higher.
# If the majority of the activity is below the Directional Day Filter Line the trend bias for the day will be lower.
# If it's even the day will most likely be flat.
# If the closing bar on the Time Line is within 1/3 the distance from the Directional Day Filter Line then added bias can be anticipated.

#hint: Best used in a 1 to 5 minute chart period


def na = double.nan;
############### Directional Day Filter Line ##############


input ORBegin = 0930;
input OREnd = 0935;
# Show Today only? (Default Yes)
input ShowTodayOnly = { default "No", "Yes"};
def s = ShowTodayOnly;
# Create logic for OR definition: 1 if between fist 5 minutes
Def ORActive = if secondsTillTime(OREnd) > 0 AND secondsFromTime(ORBegin) >= 0 then 1 else 0;
# Create logic to paint only current day post-open:
def today = if s == 0 OR getDay() == getLastDay() AND secondsFromTime(ORBegin) >= 0 then 1 else 0;
# Track OR High:
Rec ORHigh = if ORHigh[1] == 0 or ORActive[1] == 0 AND ORActive == 1 then high else if ORActive AND high > ORHigh[1] then high else ORHigh[1];
# Track OR Low:
Rec ORLow = if ORLow[1] == 0 or ORActive[1] == 0 AND ORActive == 1 then low else if ORActive AND low < ORLow[1] then low else ORLow[1];
# Calculate OR width:
Def ORWidth = ORHigh - ORLow;
# Define all the plots:
Def ORHA = if ORActive OR today < 1 then na else ORHigh;
Def ORLA = if ORActive OR today < 1 then na else ORLow;
Def O = ORHA - (ORHA - ORLA) / 2;
Plot ORL = if (o == 0 , na, o);
ORL.SetDefaultColor(color.Yellow);
ORL.SetStyle(curve.Long_DASH);
ORL.SetLineWeight(3);

################## Time Line #####################

input ORBegin2 = 0930;
# Define time that OR is finished (in hhmm format,
# 10:00 is the default):
input OREnd2 = 1030;
# Show Today only? (Default Yes)
####input ShowTodayOnly={"No", default "Yes"};
####def s=ShowTodayOnly;
# Create logic for OR definition:
Def ORActive2 = if secondsTillTime(OREnd2) > 0 AND secondsFromTime(ORBegin2) >= 0 then 1 else 0;
# Create logic to paint only current day post-open:
#####def today=if s==0 OR getday()==getlastday() AND secondsfromtime(ORBegin2)>=0 then 1 else 0;
# Track OR High:
Rec ORHigh2 = if ORHigh2[1] == 0 or ORActive2[1] == 0 AND ORActive2 == 1 then high else if ORActive2 AND high > ORHigh2[1] then high else ORHigh2[1];
# Track OR Low:
Rec ORLow2 = if ORLow2[1] == 0 or ORActive2[1] == 0 AND ORActive2 == 1 then low else if ORActive2 AND low < ORLow2[1] then low else ORLow2[1];
# Calculate OR width:
Def ORWidth2 = ORHigh2 - ORLow2;
# Define all the plots:
Plot ORH2 = if ORActive2 OR today < 1 then na else ORHigh2;
Plot ORL2 = if ORActive2 OR today < 1 then na else ORLow2;
# Formatting:
ORH2.SetDefaultColor(color.green);
ORH2.SetStyle(curve.Long_DASH);
ORH2.SetLineWeight(3);
ORL2.SetDefaultColor(color.red);
ORL2.SetStyle(curve.Long_DASH);
ORL2.SetLineWeight(3);

################################
Def TimeLine = if secondsTillTime(OREnd2) == 0 then 1 else 0;

Def pos = (ORH2 - ORL2) / 10;

plot d1 = if (TimeLine , ORH2, na);
plot d2 = if (TimeLine , ORH2 - ( pos * 2), na);
plot d3 = if (TimeLine , ORH2 - ( pos * 3), na);
plot d4 = if (TimeLine , ORH2 - ( pos * 4), na);
plot d5 = if (TimeLine , ORH2 - ( pos * 5), na);
plot d6 = if (TimeLine , ORH2 - ( pos * 6), na);
plot d7 = if (TimeLine , ORH2 - ( pos * 7), na);
plot d8 = if (TimeLine , ORH2 - ( pos * 8), na);
plot d9 = if (TimeLine , ORH2 - ( pos * 9), na);
plot d10 = if (TimeLine , (ORL2), na);

d1.SetPaintingStrategy(PaintingStrategy.arrow_down);
d2.SetPaintingStrategy(PaintingStrategy.POINTS);
d3.SetPaintingStrategy(PaintingStrategy.POINTS);
d4.SetPaintingStrategy(PaintingStrategy.POINTS);
d5.SetPaintingStrategy(PaintingStrategy.POINTS);
d6.SetPaintingStrategy(PaintingStrategy.POINTS);
d7.SetPaintingStrategy(PaintingStrategy.POINTS);
d8.SetPaintingStrategy(PaintingStrategy.POINTS);
d9.SetPaintingStrategy(PaintingStrategy.POINTS);
d10.SetPaintingStrategy(PaintingStrategy.ARROW_UP);


d2.HideBubble();
d3.HideBubble();
d4.HideBubble();
d5.HideBubble();
d6.HideBubble();
d7.HideBubble();
d8.HideBubble();
d9.HideBubble();



DEF Span = (O - ORL2) / (ORH2 - ORL2);
rec colorState = if Span > 0.66 then -1
else if Span < 0.33 then 1 else 0;


d1.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d2.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d3.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d4.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d5.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d6.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d7.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d8.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d9.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.GREEN else
Color.Yellow
);

d10.AssignValueColor(
if colorState < 0 then Color.RED else
if colorState > 0 then Color.red else
Color.Yellow
);
d1.SetLineWeight(5);
d2.SetLineWeight(5);
d3.SetLineWeight(5);
d4.SetLineWeight(5);
d5.SetLineWeight(5);
d6.SetLineWeight(5);
d7.SetLineWeight(5);
d8.SetLineWeight(5);
d9.SetLineWeight(5);
d10.SetLineWeight(5);

#######################################################################


Def TimeLineb = if secondsTillTime(OREND) == 0 then 1 else 0;

Def posbd = (ORHA - ORLA) / 10;

plot bd1 = if (TimeLineb , ORHA, na);
plot bd2 = if (TimeLineb , ORHA - ( posbd * 2), na);
plot bd3 = if (TimeLineb , ORHA - ( posbd * 3), na);
plot bd4 = if (TimeLineb , ORHA - ( posbd * 4), na);
plot bd5 = if (TimeLineb , ORHA - ( posbd * 5), na);
plot bd6 = if (TimeLineb , ORHA - ( posbd * 6), na);
plot bd7 = if (TimeLineb , ORHA - ( posbd * 7), na);
plot bd8 = if (TimeLineb , ORHA - ( posbd * 8), na);
plot bd9 = if (TimeLineb , ORHA - ( posbd * 9), na);
plot bd10 = if (TimeLineb , (ORL2), na);

bd1.SetPaintingStrategy(PaintingStrategy.POINTS);
bd2.SetPaintingStrategy(PaintingStrategy.POINTS);
bd3.SetPaintingStrategy(PaintingStrategy.POINTS);
bd4.SetPaintingStrategy(PaintingStrategy.POINTS);
bd5.SetPaintingStrategy(PaintingStrategy.POINTS);
bd6.SetPaintingStrategy(PaintingStrategy.POINTS);
bd7.SetPaintingStrategy(PaintingStrategy.POINTS);
bd8.SetPaintingStrategy(PaintingStrategy.POINTS);
bd9.SetPaintingStrategy(PaintingStrategy.POINTS);
bd10.SetPaintingStrategy(PaintingStrategy.POINTS);

bd1.SetDefaultColor(Color.YELLOW);
bd2.SetDefaultColor(Color.YELLOW);
bd3.SetDefaultColor(Color.YELLOW);
bd4.SetDefaultColor(Color.YELLOW);
bd5.SetDefaultColor(Color.YELLOW);
bd6.SetDefaultColor(Color.YELLOW);
bd7.SetDefaultColor(Color.YELLOW);
bd8.SetDefaultColor(Color.YELLOW);
bd9.SetDefaultColor(Color.YELLOW);
bd10.SetDefaultColor(Color.YELLOW);

bd1.HideBubble();
bd2.HideBubble();
bd3.HideBubble();
bd4.HideBubble();
bd5.HideBubble();
bd6.HideBubble();
bd7.HideBubble();
bd8.HideBubble();
bd9.HideBubble();
bd10.HideBubble();

AddCloud(ORL2, ORH2, color.green, color.green);
#def aggregation = if getAggregationPeriod() == (AggregationPeriod.MIN * 5) or (AggregationPeriod.MIN * 10) or (AggregationPeriod.MIN * 15) then 1 else 0 ;
def aggregation = 1;
 
rad14733

rad14733

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@Let the Bulls Run,

I'm working up a summary of how I use my indicators, based mainly on the Waddah Attar Explosion combined with the RayBullPower... I have included my version of the the RayBullPower script that I use for your perusal...

My option trading settings are as follows:
  • Waddah_Attar_Explosion(100, 13, 26, 20, 2.0, 0.2) (deadZone reduced to low range of Histogram scale for proper functionality)
  • RayBullPower(HULL, 13)

Code:
# RayBullPower_Editable
# TD Ameritrade IP Company, Inc. (c) 2008-2020
# Modified by rad14733 for day & swing trading setup
# Last Modified: 2020-07-23

declare lower;

input avgType = AverageType.HULL;
input length = 13;

plot BullPower = high - MovingAverage(avgType, close, length);

BullPower.DefineColor("Positive", Color.GREEN);
BullPower.DefineColor("Neutral", Color.GRAY);
BullPower.DefineColor("Negative", Color.RED);
BullPower.AssignValueColor(if BullPower > 0 then BullPower.color("Positive") else if BullPower < 0 then BullPower.color("Negative") else BullPower.color("Neutral"));
BullPower.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
BullPower.SetLineWeight(3);
 
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L

Let the Bulls Run

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@rad14733 thank you, I’ve added this to my studies. Please send me your summary once you complete, I’m interested to see how everything goes together to make an entry and exit using this.
 
rad14733

rad14733

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@rad14733 thank you, I’ve added this to my studies. Please send me your summary once you complete, I’m interested to see how everything goes together to make an entry and exit using this.
I have an initial version written up and saved in PDF format but it doesn't appear that PDF's can be attached to forum posts... I'll see if I can convert the original to bbCode... It's about 6 pages in length but may end up longer if I add in some examples...
 
rad14733

rad14733

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VIP
@rad14733 thank you, I’ve added this to my studies. Please send me your summary once you complete, I’m interested to see how everything goes together to make an entry and exit using this.
Ok, I started a new topic named Renko Bar Based Trading System to keep this topic from becoming a hodge podge... It isn't as pretty as the PDF, which I may post a link to in that topic...
 

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